Life Insurance Claims

When you purchase an individual policy, your producer will be able to assist your beneficiary in filing a claim. Your producer should have a supply of claim forms and can help your beneficiaries fill in the forms and meet any necessary proof of loss requirements. If your beneficiaries do not know who your insurance producer was at the time the policy was purchased, then they may want to contact another producer who is licensed with the insurance company or call the insurance company directly. Most insurance companies have consumer service representatives that would be able to provide assistance.

Your beneficiaries will receive a settlement from your insurer upon receipt of due proof of your death and upon surrender of the policy. What constitutes due proof may differ from company to company. However, a death certificate from the Office of Vital Statistics, a Coroner’s Report, an attending physician’s statement, or a hospital certificate of death is sufficient for most death claims.

Viatical Settlements

A viatical settlement is the sale of a life insurance policy to a third party. The owner (viator) of the life insurance policy sells the policy for an immediate cash benefit. The buyer (the viatical settlement provider) becomes the new owner of the life insurance policy, pays future premiums, and collects the death benefit when the insured dies.

The Alaska Division of Insurance regulates viatical settlement transactions. Brokers and their representatives as well as viatical settlement providers must be licensed in Alaska in order to engage in viatical settlement transactions. In Alaska, viatical settlements include what is commonly referred to as “life settlements,” in which the viator is not terminally ill. If you have questions or concerns regarding viatical settlements, contact the division.